European model Essay
These examples show us that the international markets may proof beneficial to the developing countries but the rules and regulations that these poor countries are ask to follow for development by the developed countries are not often good. Another example of this discrepancy is, as Doni Rodrick (2002) pointed out, labor market where developed nations have a dual policy toward global exchange of human resource. He says; The one market where poor nations have something in abundance to sell—the market for labor services—has remained untouched by this liberalizing trend.
Rules on cross-border labor flows are determined almost always unilaterally (rather than multilaterally as in other areas of economic exchange) and remain highly restrictive. Even a small relaxation of these rules would produce huge gains for the world economy and for poor nations in particular. (Roderick, 2002) He further manifest this prototype of globalizations favors developed nations as these nations can take advantage of third-world labor force whenever needed and can discard them whenever they want. He elaborates;
If the political leaders of the advanced countries have chosen to champion trade liberalization but not international labor mobility, the reason is not that the former is popular with voters at home while the latter is not. They are both unpopular. When asked their views on trade policy, fewer than one in five Americans reject import restrictions. In most advanced countries, including the United States, the proportion of respondents who want to expand imports tends to be about the same or lower than the proportion who believe immigration is good for the economy.
The main difference seems to be that the beneficiaries of trade and investment liberalization have managed to become politically effective. Multinational firms and financial enterprises have been successful in setting the agenda of multilateral trade negotiations because they have been quick to see the link between enhanced market access abroad and increased profits at home. Cross-border labor flows, by contrast, usually have not had a well-defined constituency in the advanced countries. Rules on foreign workers have been relaxed only in those rare instances where there has been intense lobbying from special interests.
When Silicon Valley firms became concerned about labor costs, for example, they pushed Congress hard to be allowed to import software engineers from India and other developing nations. (Roderick, 2002) The developing countries are strangled by the WTO agreements, IMF conditions, and World Bank rules and regulations, the conditions laid upon them by IMF and they are also required to maintain the confidence of financial markets. Thus shackled the developing countries are not left with any space to chalk out their own means of coming out from poverty.
The advance countries ask them to implement an institutional agenda that requires a very long time to be realized. This agenda will also divert attention of the developing countries from some more urgent development policies. Turning face from the markets of the world may not be a good thing to do but examples are before us that some developing countries that are progressing by leaps and bounds are following their own home-made recepies of success and development. If the rich countries of this glob are keen to globalize the world and its economy, they should follow the European model.
They should help the poorer countries edge-up to a reasonable level of affluence so that they can fit into the international grid as equal partners. The developed countries can do so by writing-off debts, transferring technology, offering grants in social sectors and making meaningful investments. The rulers of the developed countries must act like statesmen rather than like petty politicians. They should appreciate that as the information revolution spreads across the world, it will no longer be possible for the developed countries to maintain the serene calm in their current state of supremacy and splendid isolation.
However, it will take along time and labor to make the rules and regulations of globalization acceptable and friendlier to the poor and developing countries of the world. Leaders of the developed countries must stop following parochial interests under the garb of helping the poor countries. They must not forget the history of their own countries’ development and must provide space to the poor nations to develop institutions and economic policies suitable to their own local environments.
The developing nations must stop looking towards financial markets and multinational agencies as the only guide for economic growth and development. They must develop unity and confidence in their ranks in order to fight their own battle by their own. This is the only way to success with dignity.
Bhagwati, Jagdish N. (2004). In Defense of Globalization. New York: Oxford University Press. Dani Rodrik. (2002). Globalization for Whom? July-August HJarvard Magazine. http://www.harvardmagazine.com
Subject: Business model,
University/College: University of Arkansas System
Type of paper: Thesis/Dissertation Chapter
Date: 18 May 2017